To choose time tracking software for a services business, start with what your hours need to produce at the end of the month, usually billing by client and margin by project, and only then compare features. The right tool is the one your team uses every day without effort and that carries approved hours through to the pre-invoice without manual copying.
This guide explains what time tracking software is, which types of solution exist, which criteria matter most in a consultancy, an agency or a technical practice, and how to test before you decide.
What is time tracking software?
Time tracking software, often called a timesheet tool, is where each person logs the time spent on each client, project and task. In a business that bills for services, that record is the raw material for invoicing, margin control and team planning.
It should not be confused with attendance tracking, which records start and finish times and breaks for employment purposes. An organisation may need both, but they answer different questions. Time tracking answers «what did we work on and for whom», while attendance answers «when did we work».
What types of solution are there?
Services businesses usually choose between four routes. None is right or wrong in itself, and the choice depends on the size of the operation and on what happens to the hours once they are logged.
| Type of solution | When it fits | Usual limitation |
|---|---|---|
| Shared spreadsheet | Very small teams, few clients, simple billing | Copy errors, competing versions and a manual month end |
| Stand-alone time tracking tool | When the only goal is to know where the time goes | Leave, tasks and pre-invoicing live in other tools |
| ERP time module | Organisations whose ERP already handles projects and billing | Often impractical for people logging time every day |
| Operations management platform | Teams that bill hours and manage projects, leave and client requests | Clients, projects and approval rules need to be set up at the start |
In practice, many organisations start with a spreadsheet, move to a stand-alone tool and end up paying for several separate tools, each holding part of the picture. It is worth looking at that total cost before choosing.
Which criteria should you use?
These are the criteria that matter most in a business that sells hours or projects.
- Logging by client, project and task. Without this structure there are no client reports and no future quotes based on history.
- Fast daily entry. A weekly grid, suggestions and alerts for missing hours do more for data quality than any report.
- Time approval. Whoever coordinates should validate what was logged before billing, ideally every week.
- Pre-invoicing from hours. Approved hours should produce the pre-invoice with each client or project rate, without going through another spreadsheet.
- Margin visibility during the month. The billable value and the effort on each project should be visible before the month closes.
- What surrounds the hours. Leave, tasks, documents and client requests all affect hours. If they live in another tool, someone has to reconcile them by hand.
- Integrations. Technical teams benefit from a link to their code repository, and every team benefits from an API to send data to other systems.
What should you ask before deciding?
A demo always shows the best path. These questions help you see how the tool behaves in real work.
- How long does it take someone to log their day, and what happens when they forget?
- Who can change an hour that has already been approved, and is that change recorded?
- How do approved hours become an invoice, and where is the certified invoice issued?
- Can you see, halfway through the month, what the work done for each client is worth?
- Do client requests come into the same tool, or do they stay in email?
- What is the cost per person once you add every module the team needs?
How can you test without risk?
The safest way to choose is to use the tool with a real month of work. Imagine a consultancy that picks two projects and one client, invites the people working on them and logs everything for four weeks. At the end, it compares the pre-invoice the tool produces with the one it would have built by hand. The differences show the hours that were being lost and the time the month end no longer takes.
During the trial, watch for three signs. Whether the team logs on the same day without constant reminders, whether the coordinator can approve in a few minutes a week, and whether the pre-invoice comes out without last-minute corrections.
Where does Engi360 fit?
Engi360 is one option of the fourth type, a platform for teams that bill hours or run projects for clients. Hours are logged by task in a weekly grid, with validation, AI suggestions and alerts for missing hours, and pre-invoicing comes from the hours logged by project, ready for the accountant or the invoicing software, where the invoice is issued.
Around the hours, Engi360 brings together leave and absences with approvals, projects and tasks, documents and client requests as tickets with SLA, which the client follows on a protected page without creating an account. Each person works in their own portal, and the manager reviews and decides in the administration area, on the same data. Paid plans include integration with GitHub, GitLab and Azure DevOps, an API and webhooks.
The free plan includes the whole team for the first 14 days, with no credit card, so you can start the trial described above with the people working on the chosen projects and compare the result with your current process.
Frequently asked questions
What is the difference between time tracking and attendance tracking?
Time tracking shows which client, project and task people worked on and supports billing and margin. Attendance tracking records start and finish times and breaks for employment purposes. They are different needs.
Is a spreadsheet not enough to track hours?
It is enough for very small teams with few clients. With more people and projects, copying, competing versions and a manual month end start to cost more than a tool.
Which criterion matters most?
Fast daily entry. If the team does not log time on the same day, no report or pre-invoice can recover the hours that were forgotten.
How can you test a tool before deciding?
Pick two projects and one client, invite the people working on them and log everything for a few weeks. Then compare the pre-invoice the tool produces with the one you would have built by hand.
Does Engi360 issue invoices?
No. Engi360 prepares pre-invoicing from the hours logged, ready for the accountant or the invoicing software, where the invoice is issued.